Berjaya Corp Bhd (BCorp) is set to clinch up to three new wastewater treatment and landfill projects worth a combined RMB500 million (RM233.29 million) in China this year.
These projects are in addition to three existing projects, namely the RMB264 million Bainikeng Sanitary Landfill, the RMB119 million Xinan Jinben Wastewater Treatment Plant and the RMB120 million Jiangnan South New District Wastewater Treatment Plant in Sanshui district.
“The new projects will entail a combination of wastewater treatment, incinerator and landfill projects in Foshan City (Guangdong province),” Berjaya Environmental Engineering (Foshan) Co Ltd managing director Chock Eng Ta told Malaysian reporters after the launch of two ceremonies by BCorp chairman and chief executive officer Tan Sri Vincent Tan here today.
This also means that projects undertaken by BCorp in China will have a combined worth of RMB1 billion by year-end, making it eligible for a listing in Shanghai or Hong Kong.
“An (overseas) listing is possible as we are looking to raise funds … At the rate we are going, by the time we reach the middle of 2012, we would have met the criteria for a listing,” Chock said, adding that however, there is no definitive plan yet for an IPO.
He also said the wastewater treatment and landfill business in China is expected to become a significant contributor to BCorp’s earnings and revenue “in time to come, just like Cosway Corp Ltd”.
Earlier, in his speech, Tan said BCorp wants to do more of such environmental projects in China.
BCorp today commenced operations at the Bainikeng Sanitary Landfill, its first landfill in China, which is expected to generate a total revenue of RMB1.5 billion over the next 27 years.
“This is based on a minimum guaranteed waste flow of 500 tonnes per day to the facility for the initial two years, for which BCorp will charge a tipping fee of RMB123.50 per tonne, and will progressively increase to an average of 1,200 tonnes of waste per day starting from the 16th year of operations,” said Chock.
In February 2009, BCorp won the concession contract to build, operate and maintain the Bainikeng facility for 28 years, and then transfer it to the Construction Bureau of Sanshui district at no cost.
Developed by its wholly-owned subsidiary Berjaya Environmental Engineering (Foshan), the 41ha project is divided into five phases and have a maximum capacity to hold 9.52 million tonnes of municipal solid waste.
Chock estimates that it will take BCorp seven to eight years for the project to break even.
Yesterday also marked the ground breaking of the Xinan Jinben Wastewater Treatment Plant.
The build-operate-transfer (BOT) project, awarded by Xinan Public Asset Investment Co Ltd, features a 40-million litre per day (mld) wastewater treatment plant with an 8km wastewater piping work for a concession period of 25 years.
Developed by another BCorp subsidiary, Berjaya Green Resources Environmental Engineering (Foshan) Co Ltd, construction of the project is slated for completion in June next year.
“The 4ha project is expected to generate a total revenue of RMB768 million throughout the concession period,” said Chock. The project is expected to take eight to nine years to break even.
On the Jiangnan South New District Wastewater Treatment Plant, Chock said the BOT project, also by Xinan Public Asset Investment Co, will be of a similar capacity to Xinan Jinben Wastewater Treatment Plant and for a concession period of 25 years.
Construction work will start early next year and takes a year to complete.
